Weaver95:ferretman:Yes...there are no other costs besides employee pay and benefits. What the student hasn't taken into account, if minimum wage was doubled, the rising costs associated with the suppliers, the ones who manufacture the beef patties, chicken nuggets, soda syrup, shake mix, french fries, fish sandwiches, packaging suppliers, etc. These are all manufactured by other companies under contract to, in this case, McDonalds and are typically union-shops (at least on the east coast). If everyone's wages increase the product cost will increase and there will be less jobs.

McDonald's only owns 15% of its restaurants -- the remainder are franchised. The vast, vast majority of people at the burger-flipping level are not reflected in MCD's wage costs. The "study" is a total and complete fail from beginning to end and the student who wrote it should go back to his first class and punch the teacher.

Yep. Every able-bodied individual who is on any kind of long-term assistance is being subsidized by taxpayers (and more specifically, the US' creditors).

Would increasing minimum wage to a livable wage cause inflation? You bet. But not as bad as you might think it will. It will level off, our working class individuals will have increased consumption power, and then our economy will grow by leaps and bounds. Just like every other civilized nation that has increased to a livable minimum wage.

Oh, that's a lot more than I thought. Maybe the real question should be why should McDonald's party their workers that much? Are they experiencing a shortage of unskilled, completely replaceable workers?

They shot themselves in the foot with local mailers for Buy One Get One. Also some $1 items, especially with the coupon, like Quarter Pounders and Big Macs (Not combinable).

As I got home I realized that two sandwiches at $3 reduced the value in my mind significantly. It wasn't "hey each sandwich is now worth $1.50" it was "damn this stuff is crap I should have gone to Chipotle"

i'd love too...but my competition has artificially jacked up the barriers to entry into the market segment i'm most interested in getting into right now. oh, I suppose I could write my congressthing about it...but lets be honest - who's he gonna listen to, me or the megacorp that's giving him a couple hundred thousand a year to look the other way?

which leaves me the grey or black market, but there's other issues involved with that market that present a different set of challenges.

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits. In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its more than 500,000 U.S. employees.

Thus, if McDonald's executives wanted to double the salaries of all of its employees and keep profits and other expenses the same, it would need to increase prices by just 17 cents per dollar, according to Morelix.

As has been pointed out above, this is a total failure of economics. Assuming that a 17% increase in prices would result in a 17% increase in revenue is idiocy, because the increased price will result in lower demand and therefore lower sales. If the original statement were true, McDonalds would just raise their prices 17% and earn that much more profit.

clkeagle:Would increasing minimum wage to a livable wage cause inflation? You bet. But not as bad as you might think it will. It will level off, our working class individuals will have increased consumption power, and then our economy will grow by leaps and bounds. Just like every other civilized nation that has increased to a livable minimum wage.

The world NEEDS this expertise. It's ready for it. Please man, start a restaurant business and put this into action!

I think some people are against raising wages because that would make them feel less wealthy.Maybe they are so used to the tired arguments and made up their minds long ago to the point that facts cannot change them.Maybe they love to watch people suffer in poverty.

There is enough turnover in fast food that the jobs won't be missed. There will even be new jobs for attempts at automation. Now way too much money from fast food goes to advertising and marketing.

MrBallou:ferretman: FTA: "In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its <a data-cke-saved-href="http://money.cnn.com/2011/04/04/news/companies/mc donalds_jobs/index.ht m" target="_hplink">more than 500,000 U.S. employees."

Yes...there are no other costs besides employee pay and benefits. What the student hasn't taken into account, if minimum wage was doubled, the rising costs associated with the suppliers, the ones who manufacture the beef patties, chicken nuggets, soda syrup, shake mix, french fries, fish sandwiches, packaging suppliers, etc. These are all manufactured by other companies under contract to, in this case, McDonalds and are typically union-shops (at least on the east coast). If everyone's wages increase the product cost will increase and there will be less jobs.

Yeah, your right to get cheap-ass food far outweighs those people's right to earn enough to lead a decent life.

FFS people, pay for what you get. People are trying to make a living, just like you.

Dow Jones and the Temple of Doom:But what if the increased cost resulted in a decrease in demand and thus lower sales? They may be able to pay employees more, but they'd have to cut costs somewhere else.

well, given that your average CEO makes 400% more than they're worth....you could start there.

Weaver95:Neighborhood Watch: Weaver95: it could be better, if you put more into your employees.

Then start a business and do that. You're the expert.

i'd love too...but my competition has artificially jacked up the barriers to entry into the market segment i'm most interested in getting into right now. oh, I suppose I could write my congressthing about it...but lets be honest - who's he gonna listen to, me or the megacorp that's giving him a couple hundred thousand a year to look the other way?

which leaves me the grey or black market, but there's other issues involved with that market that present a different set of challenges.

"artificially jacked up barriers to entry". LOL, this is what farklibs actually believe.

Millions of businesses are opened every year. Start one and pay living wages.

FTA: " would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67"

Who in their right mind would pay $4 for a Big Mac alone when you can get a Double-Double AND fresh-cut fries for a fiver from In n Out?WHAT A STEAMING PILE.I remember when Big Macs were under a buck and we all screamed when we saw $1.30.Jack in the Box Big Stack with BBQ sauce is KILLER right now. FIND A COUPON!

No, in the civilised world, the choice is either to have high wages, high taxes and welfare, or the unique basket case in America where no-one wants to pay for anything for anyone under any circumstances.

Weaver95:Dow Jones and the Temple of Doom: But what if the increased cost resulted in a decrease in demand and thus lower sales? They may be able to pay employees more, but they'd have to cut costs somewhere else.

well, given that your average CEO makes 400% more than they're worth....you could start there.

Again, when you start your business, pay the CEO no more than he's worth. With paying only fair wages to everyone, you should be able to offer a quality product at a fair price, crushing the inefficient corporations who waste all their money on executive pay.

You don't own McDonald's. It's none of your farking business what they decide to offer in wages or salary to ANY of their workers.

Dow Jones and the Temple of Doom:But what if the increased cost resulted in a decrease in demand and thus lower sales? They may be able to pay employees more, but they'd have to cut costs somewhere else.

Advertising? Does anyone not know of McDonalds? I can't drive 5 or 10 miles without seeing one around here.

Debeo Summa Credo:Again, when you start your business, pay the CEO no more than he's worth. With paying only fair wages to everyone, you should be able to offer a quality product at a fair price, crushing the inefficient corporations who waste all their money on executive pay.

are you familiar with how Costco is run? you might find it interesting to see how their CEO runs the business, find out how his company stacks up against WalMart.

You don't own McDonald's. It's none of your farking business what they decide to offer in wages or salary to ANY of their workers.

It bothers you that I question your false and unsupported assumptions doesn't it? interesting indeed to observe....

If you want to earn more monet, then get a better job than flipping burgers. It is meant to be an entry-level position, not to support a family. Other people do not owe you anything, much less a government-mandated minimum wage. It's this lazy sense of entitlement that is killing this country.

Weaver95:ferretman:Yes...there are no other costs besides employee pay and benefits. What the student hasn't taken into account, if minimum wage was doubled, the rising costs associated with the suppliers, the ones who manufacture the beef patties, chicken nuggets, soda syrup, shake mix, french fries, fish sandwiches, packaging suppliers, etc. These are all manufactured by other companies under contract to, in this case, McDonalds and are typically union-shops (at least on the east coast). If everyone's wages increase the product cost will increase and there will be less jobs.

you failed economics class, didn't you?

Yeah, cuz economics is a science..nobody with a PhD in econ from Harvard EVER argues exactly the opposite course of action with a PhD from Princeton over economic issues.